xAI lays off 500 data annotation workers

xAI has laid off 500 workers from its data annotation division, TechCrunch reported. The layoffs primarily affected contract-based workers, many of whom were hired through third-party outsourcing agencies.

The decision was made as part of an internal restructuring effort aimed at optimizing resource allocation. xAI founder Elon Musk has not provided details about the future role of this team in the company’s long-term strategy.

The affected workers were responsible for cleaning, labeling, and preparing data for AI models. The move raises fresh concerns about job stability in the broader U.S. tech sector.

Nodirbek Razzokov

Editor of «ZAMIN.UZ»